S 1733119th CongressIn Committee

Highway Funding Transferability Improvement Act

Introduced: May 13, 2025

Sponsor: Sen. Cramer, Kevin [R-ND] (R-North Dakota)

Economy & TaxesInfrastructure

Standard Summary

Comprehensive overview in 1-2 paragraphs

Highway Funding Transferability Improvement Act is a short bill that changes how much Federal-aid highway funds can be moved to other transportation programs. Specifically, it raises the cap in current law from 50 percent to 75 percent for transfers under 23 U.S.C. 126(a). In practice, this increases states’ flexibility to shift funds from highway programs to other eligible programs (notably mass transit programs) without changing the total amount of federal funds Congress has authorized for surface transportation. The bill has been introduced in the Senate and referred to the Environment and Public Works Committee; it does not include new funding or offsetting provisions.

Key Points

1Purpose: Increase the allowable share of Federal-aid highway funds that states can transfer to other eligible transportation programs (primarily mass transit) under existing law.
2Change in law: Amend 23 U.S.C. 126(a) by replacing the current 50 percent transfer cap with a 75 percent transfer cap.
3Scope: The adjustment is limited to the transferability provision in Section 126(a); no new appropriation or new programs are created.
4Administration: The transfer remains subject to existing statutory framework and oversight; states would have greater flexibility within the same overall funding envelope.
5Policy implication: More flexibility for states to balance funding between highways and transit/mass transportation, potentially affecting project pipelines and mode share outcomes.

Impact Areas

Primary group/area affected:- State Departments of Transportation and transit agencies that manage and fund highway and mass transit projects, especially urban areas where transit needs compete with highway funding.Secondary group/area affected:- Highway construction and maintenance stakeholders, plus local governments planning transportation networks; impacts on long-term capital planning and mutual funding strategies between highway and transit programs.Additional impacts:- Potential shifts in funding priorities could influence environmental outcomes, equity considerations, and the pace of both highway and transit investments. The bill does not change total federal funding levels, but it changes how flexibly those funds can be reallocated across programs.

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